North European Oil Royalty Trust (NRT) and Permian Basin Royalty Trust (PBT) Critical Analysis

North European Oil Royalty Trust (NYSE:NRT) and Permian Basin Royalty Trust (NYSE:PBT) are both small-cap oils/energy companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, valuation, risk, dividends, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations for North European Oil Royalty Trust and Permian Basin Royalty Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
North European Oil Royalty Trust 0 0 0 0 N/A
Permian Basin Royalty Trust 0 0 0 0 N/A

Profitability

This table compares North European Oil Royalty Trust and Permian Basin Royalty Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
North European Oil Royalty Trust 89.03% 7,120.00% 362.03%
Permian Basin Royalty Trust 95.79% 6,166.83% 737.06%

Dividends

North European Oil Royalty Trust pays an annual dividend of $0.60 per share and has a dividend yield of 8.7%. Permian Basin Royalty Trust pays an annual dividend of $0.66 per share and has a dividend yield of 9.4%.

Valuation & Earnings

This table compares North European Oil Royalty Trust and Permian Basin Royalty Trust’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
North European Oil Royalty Trust $7.20 million 8.79 $6.41 million N/A N/A
Permian Basin Royalty Trust $30.56 million 10.71 $29.32 million N/A N/A

Permian Basin Royalty Trust has higher revenue and earnings than North European Oil Royalty Trust.

Insider & Institutional Ownership

12.8% of North European Oil Royalty Trust shares are held by institutional investors. Comparatively, 11.1% of Permian Basin Royalty Trust shares are held by institutional investors. 0.5% of North European Oil Royalty Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

North European Oil Royalty Trust has a beta of 0.1, suggesting that its share price is 90% less volatile than the S&P 500. Comparatively, Permian Basin Royalty Trust has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500.

Summary

Permian Basin Royalty Trust beats North European Oil Royalty Trust on 8 of the 11 factors compared between the two stocks.

North European Oil Royalty Trust Company Profile

North European Oil Royalty Trust, a grantor trust, holds overriding royalty rights covering gas and oil production in concessions or leases in the Federal Republic of Germany. It holds rights under contracts with German exploration and development subsidiaries of ExxonMobil Corp. and the Royal Dutch/Shell Group of Companies. The company holds royalties for the sale of well gas, oil well gas, crude oil, condensate, and sulfur. North European Oil Royalty Trust was founded in 1975 and is based in Red Bank, New Jersey.

Permian Basin Royalty Trust Company Profile

Permian Basin Royalty Trust, an express trust, holds overriding royalty interests in various oil and gas properties in the United States. The company owns a 75% net overriding royalty interest in the Waddell Ranch properties comprising Dune, Judkins, McKnight, Tubb, University-Waddell, and Waddell fields located in Crane County, Texas. As of December 31, 2017, its Waddell Ranch properties contained 348 net productive oil wells, 65 net productive gas wells, and 102 net injection wells. The company also holds a 95% net overriding royalty in the Texas Royalty properties, which include various producing oil fields, such as Yates, Wasson, Sand Hills, East Texas, Kelly-Snyder, Panhandle Regular, N. Cowden, Todd, Keystone, Kermit, McElroy, Howard-Glasscock, Seminole, and others located in 33 counties in Texas. Its Texas Royalty properties comprise approximately 125 separate royalty interests containing approximately 51,000 net producing acres. Permian Basin Royalty Trust was founded in 1980 and is based in Dallas, Texas.

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